Tax Season is right around the corner. Check out these five stress-busting tax time tips and a few helpful reminders.
Get a Head Start
To avoid feeling frazzled, don’t wait until the last minute to file. Instead, get it done early and break the task into small chunks.
Get Organized
Keep all your paper documents in one place – a simple expanding file folder is a great option. Ensure that you also keep your digital documents organized together.
Listen to Music
While you’re getting organized, play relaxing songs to keep your stress at bay. Or if you need a little motivation while filing turn on an upbeat tune.
Take a Break
If you start to feel burnt out while filing, taking a quick 5 to 15-minute break can work wonders. Try taking slow, deep breaths, going for a walk, or eating a healthy snack.
Hire a Pro
If your taxes are complex or you’re worried about making mistakes, hiring a professional can eliminate errors and alleviate stress.
Important Dates
April 15th – Deadline to file and pay taxes or request an extension
October 15th – Last day to file a tax return if you received an extension from the IRS
The Pandemic and Your Taxes
Unemployment Benefits
While the first $10,200 of unemployment benefits were made tax-free in 2020, this does not apply in 2021. So plan to pay taxes if you were unemployed in 2021 and did not have taxes withheld from your unemployment payments.
Paycheck Protection program (PPP) Loans
In an effort to help small business owners stay afloat, the government offered them Paycheck Protection Program (PPP) loans. these loans will be fully forgiven as long as they were used for payroll costs, interest on mortgages, rent, and/or utilities.
Stimulus Checks
Good news: If you received a stimulus check, it does not count as taxable income.
Sources:
IRS.gov
HomeTreasury.gov
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